BP expects to hit USD35 bn net debt target in Q1

MOSCOW (MRC) -- BP said it expected to hit its USD35 bn net debt target during the first quarter of 2021 after faster-than-expected progress on its disposals programme and a "strong" quarter driven by recovering oil prices, said the company.

The oil giant had said previously it expected to meet its debt forecast by the fourth quarter of 2021 at the earliest, down from a level of USD51.4 bn a year ago and USD38.9 bn at the end of 2020.

BP forecast raising USD4bn -USD6bn from disposals and said proceeds would now be at the upper end of this range, adding that 60% of surplus cash would be returned to shareholders via a buyback.

"This is a result of earlier than anticipated delivery of disposal proceeds combined with very strong business performance during the first quarter. We look forward to updating the market at our first quarter results, including further information on share buybacks," said chief executive Bernard Looney.

During the first quarter BP had received around USD4.7 bn in asset sales, including approximately USD2.4 bn from the completion of the sale of a 20% interest in Oman's Block 61 and $1bn as the final payment from the sale of its global petrochemicals business to INEOS.

It added that its target of USD25 bn of disposal proceeds between the second half of 2020 and 2025 was now underpinned by agreed or completed transactions of around USD14.7 bn with around USD10 bn of proceeds received.

As MRC informed earlier, Rosneft together with BP will develop the hydrogen business.
Together they will study the prospects for new projects using renewable energy sources (RES), as well as the use of technologies for capturing, utilizing and storing CO2. Earlier in Russia, Gazprom and Novatek spoke about their intention to create a hydrogen business and new technologies for the disposal of harmful emissions.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.

MRC

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders and synthetic rubber, and its affiliate companies in Europe have announced a price increase for all polycarbonate (PC) grades in Europe, as per the company's press release.

Effective April 1, 2020, or as existing contract terms allow, the contract and spot PC prices for the products listed below increased as follows:

- CALIBRE PC resins - by EUR400 per metric ton.

As MRC informed earlier, Trinseo last raised its prices for all PC grades in Europe on 1 March 2021 by EUR600 per metric ton.

According to MRC's ScanPlast report, Russia's overall consumption of PC granules (excluding exports from Belarus) totalled 8,100 tonnes in January 2021, up by 20% year on year (6,800 tonnes a year earlier).

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.8 billion in net sales in 2019, with 17 manufacturing sites around the world, and approximately 2,700 employees.
MRC

MOSCOW (MRC) -- Global chemical output rose by 1.4% in February, at a slightly slower pace than January, said American Chemistry Council (ACC).

The ACC’s Global Chemical Production Index (CPRI) measures the production volume of the chemical industry for 33 key nations, sub-regions, and regions, all aggregated to the world total. During February, output was weak in most regions, with chemical production increasing in the Commonwealth of Independent States and in the Asia-Pacific region.

Headline global production was up 14.4% year on year on a three-month moving average (3MMA) basis. Global output stood at 132% of its average 2012 levels. Global capacity rose 0.2% and was up 1.9% year on year. With improving production capacity utilisation in the global chemical industry rose one point to 89.2%, above February levels.

The effects of the mid-February freeze influenced chemical production in North America. Production fell by 3.3% in the region, with activity improved in Mexico and soft in Canada. Regional activity was down by 3.9% year on year with year-earlier declines in the US, Canada, and Mexico.

As MRC informed earlier, there has been a shortage of suspension polyvinyl chloride (SPVC) in the world since the end of last year, prices are breaking new historical records. The Russian market also does not stand aside from the global trends, producers intend to achieve a further rise in April prices, and in some cases, a price increase of Rb10,000/tonne and higher is being discussed.

As per MRC, Russia's output of chemical products rose in February 2021 by 5.3% year on year. Thus, production of basic chemicals increased year on year by 7.5% in the first two months of 2021. According to the Federal State Statistics Service of the Russian Federation, mineral fertilizers accounted for the greatest increase in the January-February output. Production of benzene dropped to 113,000 tonnes in February 2021, compared to 120,000 tonnes a month earlier. Overall output of this product reached 241,000 tonnes over the stated period, down by 7.5% year on year.
MRC

MOSCOW (MRC) -- Phillips 66 expects to report a first-quarter net loss of USD680m-865m because of the polar storm and the effects of the coronavirus pandemic, said Reuters.

A February deep freeze in U.S. central and southern states led to power outages and gas-supply disruptions that knocked oil refineries and chemical plants out of commission for up to two weeks. Several companies have issued warnings due to the storm.

Phillip 66’s adjusted net loss will reach between USD550 million and USD700 million for the quarter ended March 31 due to lost production and higher costs from the outages, it said. IBES data on Refinitiv had estimated a USD210 million loss.

Phillips 66 will suffer a larger impact than rivals because of its recent reliance on chemicals for earnings, Blair said. Its chemical plants ran at about mid-70% of capacity, down from a projected 90%. Its refining and marketing and specialties segments also were hurt by lower global demand for refined petroleum products due to the COVID-19 pandemic.

Exxon Mobil last week said the winter weather would cut its first quarter profit by up to USD800 million, with the largest impact in its chemical and refining units.Phillips 66 had reported a USD2.5 billion first-quarter net loss in the year-ago quarter, on writedowns. It expects to recognize a first-quarter impairment reflecting Phillips 66 Partners’ decision to exit the Liberty Pipeline project.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
MRC

MOSCOW (MRC) -- Lummus Technology announced that its Novolen business has been awarded a PP contract by Jin Guo Tou (Jinzhou) Petrochemical Co., Ltd. at its petrochemical facility in Jinzhou City, Liaoning Province, China, said Hydrocarbonprocessing.

"We are grateful to Jin Guo Tou for selecting Novolen, which builds on the recent series of awards and strong track record of our PP technology," said Leon de Bruyn, Lummus Technology's President and Chief Executive Officer. "With Novolen, our clients can achieve optimized performance of their facilities and produce a flexible range of products for all PP applications while enjoying low capital and operating costs."

Lummus' scope includes the technology license for a 900 KTA polypropylene unit as well as basic design engineering, training and services, and catalyst supply. The unit consists of one line of 300 KTA and one line of 600 KTA, the largest single-line capacity that has been licensed in the market today.

Lummus Novolen Technology GmbH licenses polypropylene technology and provides related engineering and technical support/advisory services. Novolen also supplies NHP catalysts for the production of high-performance polypropylene grades and NOVOCENE metallocene catalyst for the production of special polypropylene grades.

As per MRC, Lummus Technology announced an award for its ethylbenzene technology from a customer in Jiangsu Province, China. Once complete, the unit will produce 508,000 tonnes/year of ethylbenzene via the EBOne technology.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.

Lummus Technology is a master licensor of proprietary technologies in refining, petrochemicals, gas processing and coal gasification sectors, as well as a supplier of proprietary catalysts, equipment and related engineering services. It has about 130 licensed technologies and more than 3,400 patents and trademarks.
MRC